Aware(AWRE) - 2024 Q1 - Quarterly Results

Revenue Performance - Total revenue for Q1 2024 increased by 3% year-over-year to $4.4 million, driven by higher software maintenance revenue[3]. - Recurring revenue for Q1 2024 was $3.145 million, reflecting a 3% increase compared to $3.062 million in Q1 2023, representing 71% of total revenue[3][7]. - Total revenue for the three months ended March 31, 2024, was $4,421,000, an increase from $4,374,000 in the previous quarter[23]. - Total recurring revenue reached $3,145,000, compared to $3,675,000 in the prior quarter, showing a decline[23]. - Non-recurring revenue increased significantly to $1,276,000 from $699,000 in the prior quarter[23]. - Total software maintenance revenue was $2,160,000, slightly down from $2,183,000 in the previous quarter[23]. Operating Performance - Operating expenses decreased by $0.5 million, or 8% year-over-year, to $5.7 million, highlighting ongoing cost optimization efforts[3]. - Net loss for Q1 2024 was $1.0 million, or $(0.05) per diluted share, a 30% improvement from a net loss of $1.6 million, or $(0.07) per diluted share, in Q1 2023[8]. - Adjusted EBITDA loss for Q1 2024 was $1.0 million, an improvement from an adjusted EBITDA loss of $1.4 million in the same period last year[8]. - Net loss for the three months ended March 31, 2024, was $982,000, an improvement from a loss of $4,238,000 in the previous quarter[22]. - Adjusted EBITDA improved to $(960,000) from $(1,218,000) in the previous quarter[22]. - Stock-based compensation decreased to $162,000 from $428,000 in the previous quarter[22]. - Interest income showed a slight improvement, with a loss of $(280,000) compared to $(303,000) in the previous quarter[22]. Strategic Initiatives - Aware expanded its customer base in Latin America and Turkey, onboarding new clients including a Brazilian company and a leading bank in Turkey[4]. - The company anticipates delivering double-digit revenue and ARR growth in 2024, supported by an expanding pipeline of opportunities[2][7]. - Aware's technology is now utilized by a major federal government agency for biometric data enrollment, enhancing its presence in the government sector[3][6]. - The company has implemented strategic cost-optimization initiatives, including a reduction of over 10% in headcount, to streamline operations and lower the revenue breakeven point[6]. Cash Position - Cash, cash equivalents, and marketable securities totaled $28.5 million as of March 31, 2024, down from $30.9 million as of December 31, 2023[8].